EX-99 2 ex99-1.htm EXHIBIT 99.1

 

 

Exhibit 99.1

 

 

 

 

Walter Shephard

Vice President, Finance, Chief Financial Officer, and Treasurer

Voice: 860-704-3955

inquire@zygo.com

 

For Immediate Release

 

ZYGO RECORDS SOLID IMPROVEMENTS IN Q1 ORDERS, REVENUES, AND EARNINGS OVER PRIOR YEAR

 

MIDDLEFIELD, CT, OCTOBER 27, 2005 – Zygo Corporation (NASDAQ: ZIGO) today announced earnings for the first quarter of fiscal 2006 of $2.3 million, or $0.13 per diluted share, as compared with earnings of $1.3 million, or $0.07 per diluted share, for the same period in fiscal 2005. The fiscal 2006 first quarter results include share-based payment compensation expense of $0.2 million ($0.4 million pre-tax), or $0.01 per diluted share. The fiscal 2005 first quarter results include a loss from discontinued operations of $0.01 per diluted share.

 

Beginning this quarter, Zygo Corporation adopted the provisions of Financial Accounting Standards Board Statement No. 123R, “Share-Based Payments (As amended).” This statement requires that the compensation expense resulting from all shared-based payment transactions be recognized in the financial statements. The statement of operations for the first quarter of fiscal 2006 includes pre-tax share-based payment compensation expense of $0.1 million in cost of goods sold, $0.2 million in selling, general, and administrative expense, and $0.1 million in research and development expense.

 

Net sales for the first quarter of fiscal 2006 increased 25% to $34.6 million as compared with the prior year first quarter. Backlog at September 30, 2005 totaled $70.6 million, an increase of $4.0 million, or 6%, from June 30, 2005 and of $9.2 million, or 15%, from September 30, 2004.

 

Orders for the first quarter of fiscal 2006 were $38.6 million as compared with $34.1 million for the first quarter of fiscal 2005. Orders from the Company’s semiconductor segment accounted for 52% of the orders received, with the industrial segment accounting for 48% of the orders.

 

“We are very pleased with the continued strong financial performance of our company,” stated Bruce Robinson, ZYGO’s Chairman and President. “The Company continues to make progress toward achieving our long term-objectives with a resulting positive effect on earnings. Orders were particularly strong for what is normally our seasonally weak quarter and market opportunities for our products look promising.”

 

 

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Highlights for the first quarter of fiscal 2006 included:

 

 

•

New orders were received for Generation 7.5 and OLED flat panel metrology.

 

•

Orders for our semiconductor lithography products were up over Q1 of last year, and stronger than we had anticipated.

 

•

An order for $3.8 million for opto-mechanical assemblies, related to the lasik eye surgery tool, supported indications of continuing acceptance in the market.

 

•

EPS is up 86% over Q1 of last year.

 

Mr. Robinson closed his remarks by stating, “We are continuing to invest in new products and services for the semiconductor market. It is our belief that the strategy of transitioning from an OEM to a direct supplier will have a long-term positive effect on revenue and earnings growth.”

 

Zygo Corporation is a worldwide supplier of optical metrology instruments, precision optics, and electro-optical design and manufacturing services, serving customers in the semiconductor capital equipment and industrial markets.

 

Note: ZYGO’s teleconference to discuss the results of the first quarter of fiscal 2006 will be held at 6 PM Eastern Standard Time on October 27, 2005 and can be accessed by dialing 888-433-1680. This call is web cast live on ZYGO’s web site at www.zygo.com. The call may also be accessed for 30 days following the teleconference.

 

All statements other than statements of historical fact included in this news release regarding our financial position, business strategy, plans, anticipated growth rates, and objectives of management of the Company for future operations are forward-looking statements. Forward-looking statements are intended to provide management's current expectations or plans for the future operating and financial performance of the Company based upon information currently available and assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plans," "strategy," "project," and other words of similar meaning in connection with a discussion of future operating or financial performance. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements are fluctuations in capital spending of our customers, fluctuations in net sales to our major customer, manufacturing and supplier risks, dependence on new product development, rapid technological and market change, risks in international operations, dependence on proprietary technology and key personnel, length of the sales cycle, environmental regulations, and stock price. Further information on potential factors that could affect Zygo Corporation’s business is described in our reports on file with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2005.

 

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Zygo Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

(Thousands, except per share amounts)

 

 

 

  

 

Three Months Ended

 

 

  

 

September 30,

    

 

September 30,

  

 

 

  

 

2005

    

 

2004

  

Net sales

  

 

 

    

 

 

  

 

Products

  

 $

30,621

    

$ 

25,883

  

 

Development services

  

 

3,961

    

 

1,695

  

 

 

  

 

34,582

    

 

27,578

  

Cost of goods sold

  

 

 

    

 

 

  

 

Products

  

 

18,261

    

 

15,168

  

 

Development services

  

 

2,906

    

 

1,297

  

 

 

  

 

21,167

    

 

16,465

  

 

Gross profit

  

 

13,415

    

 

11,113

  

 

 

  

 

 

    

 

 

  

Selling, general, and administrative expenses

  

 

6,411

    

 

5,659

  

Research, development, and engineering expenses

3,540

    

 

3,208

  

 

Operating profit

  

 

3,464

    

 

2,246

  

 

 

  

 

 

    

 

 

  

Other income:

  

 

 

    

 

 

  

 

Interest income

  

 

417

    

 

179

  

 

Miscellaneous income (expense), net

  

 

128

    

 

(29

 )

 

Total other income

  

 

545

    

 

150

  

 

Earnings from continuing operations

  

 

 

    

 

 

  

 

before income taxes and minority interest

4,009

    

 

2,396

  

 

 

  

 

 

    

 

 

  

Income tax expense

  

 

(1,523

 )  

 

(862

 )

Minority interest

  

 

(150

 )  

 

(122

 )

 

Earnings from continuing operations

  

 

2,336

    

 

1,412

  

 

 

  

 

 

    

 

 

  

Discontinued TeraOptix operations, net of tax

  

 

-

   

 

(61

 )

Charges and adjustments on the disposal of

 

 

 

    

 

 

  

TeraOptix, net of tax

  

 

-

   

 

(4

 )

 

Loss from discontinued operations

  

 

-

   

 

(65

 )

Net earnings

  

 $

2,336

    

$ 

1,347

  

 

 

  

 

 

    

 

 

  

Basic - Earnings per share:

  

 

 

    

 

 

  

 

Continuing operations

  

 $

0.13

    

$

0.08

  

 

Discontinued operations

  

 $

-

   

$

-

 

 

Net earnings

 

 $

0.13

    

$

0.08

  

 

 

  

 

 

    

 

 

  

Diluted - Earnings (loss) per share:

  

 

 

    

 

 

  

 

Continuing operations

  

 $

0.13

    

$

0.08

  

 

Discontinued operations

  

 $

-

   

$

(0.01

 )

 

Net earnings

  

 $

0.13

    

$ 

0.07

  

 

 

  

 

 

    

 

 

  

 

 

 

3

 


 

 

 

Zygo Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 

(Thousands of dollars)

  

September 30, 2005

 

  

June 30, 2005

Assets

  

 

 

  

 

Current assets:

  

 

 

  

 

 

Cash and cash equivalents

 $

17,159

 

 $

20,949

 

Marketable securities

  

20,775

 

  

17,242

 

Receivables, net

  

25,081

 

  

28,125

 

Inventories

  

35,032

 

  

33,727

 

Prepaid expenses

  

2,114

 

  

2,140

 

Deferred income taxes

  

8,934

 

  

8,895

 

Total current assets

  

109,095

 

  

111,078

 

 

  

 

 

  

 

Marketable securities

  

20,615

 

  

18,711

Property, plant, and equipment, net

  

31,459

 

  

31,420

Deferred income taxes

  

20,304

 

  

21,476

Intangible assets, net

  

5,714

 

  

5,638

Other assets

  

987

 

  

1,017

Total assets

 $

188,174

 

 $

189,340

 

 

  

 

 

  

 

 

 

  

 

 

  

 

Liabilities and Stockholders' Equity

  

 

 

  

 

Current liabilities:

  

 

 

  

 

 

Payables

 $

11,705

 

 $

13,510

 

Accrued expenses

  

31,151

 

  

32,804

 

Income taxes payable

  

1,409

 

  

1,510

 

Total current liabilities

  

44,265

 

  

47,824

 

 

  

 

 

  

 

Other long-term liabilities

  

94

 

  

96

Minority interest

  

777

 

  

1,249

Stockholders' equity

  

143,038

 

  

140,171

Total liabilities and stockholders' equity

 $

188,174

 

 $

189,340

 

 

  

 

 

  

 

 

 

  

 

 

  

 

 

 

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